HAFA Short Sales- Can I do a HAFA short sale on my Wellington Home?

HAFA Short Sales- Can I do a HAFA short sale on my Wellington home? HAFA short sales Wellington homes for sale

You may be able to qualify for $3,000 at the closing of your short sale to help you with relocation costs. 

But the best part about the HAFA short sale program is that it requires the lender to not go after you for a deficiency judgment. This means forgiveness of the debt. 

These are the questions you will need to answer to see if you can qualify for a HAFA short sale. You must be able to answer yes to these questions. But then again, just because you answer yes to all these questions you can still get turned down to do a HAFA short sale for other reasons. The most common reason is that your lender does not participate in the HAFA program. It is not mandatory for lenders to participate. The other reason is if you have in addition to your first mortgage a HELOC ( home equity line of credit) on your home that is in default. Most of those get sent to collection agencies who then may not be willing to accept the low pay off that HAFA offers them. 

You also can not get qualified for the HAFA short sale program if you have a VA loan or an FHA loan. 

But remember that you can still get approved for a ‘traditional’ short sale if you don’t qualify for the HAFA short sale program: 

  • Do you live in the home of have lived in there within the last 12 months? 
  • Do you have a documented hardship? 
  • Have you purchased a new home within the last 12 months? 
  • Is your first mortgage less than $729,750? 
  • Did you get your mortgage on or before January 1, 2009? 
  • Have you been convicted within the last 10 years of felony larceny, theft, fraud, forgery, money laundering or tax evasion in connection with a mortgage or real estate transaction? 

You may be able to qualify for the HAFA short sale program if you had to move over 100 miles away from your residence to take a job because you were unemployed. 

You also have to be behind in your mortgage payments or in danger of becoming behind. 

The other stipulation is that your monthly mortgage payment can not be less than 31% of your gross income. This is where many homeowners who apply for HAFA get turned down. 

All HAFA short sales have a “arms length” agreement you and the buyer and your agents will have to sign. HAFA does not allow you to sell your home to a family member, relative or anyone else that is close to you. 

If an investor buys your property he will not be allowed to resell it for 90 days. 

Your short sale real estate agent should know these rules and be able to help guide you through the HAFA process.

Call Nestor Gasset and Katerina Gasset right now to get you started on your Wellington short sale HAFA program at 561-753-0135. 

For HAFA forms and FAQ you can visit the Fannie Mae website: https://www.fanniemae.com/singlefamily/making-home-affordable

Disclaimer: there are guidelines for HAFA as stated on the HAFA section of the Fannie Mae website. These rules are subject to change at any time. This is for informational purposes only. This is NOT legal advice. We are NOT attorneys.

authored by Katerina Gasset